Competitive Discount Luxury Trips
Hotwire's Business Model Finds the Best Deals for Vacation Planning
Feb 21, 2008
After an interview with the CEO of Foresee Results about customer satisfaction with travel planning websites, Luxury Travel wondered how much concern the owners of Expedia, Travelocity, and Orbitz really have for their user compatibility. They are the Big Three, and that doesn't appear to be changing despite their low scores. Or, is in fact, a change in the future? After all, the highest level of customer satisfaction went to smaller travel deal websites like Kayak, and to individual airline and hotel websites. Another up-and-comer of note is Hotwire.com, which has impressive customer satisfaction (seen in its user feedback).
What vacation planners are looking for in a discount travel deals website is easily summed up with a quick look at Hotwire. JD Power and Associates named it a top consumer website, and the Market Metrix Hospitality Index considers it a Best Hotel Website for two years running.
Whether scheduling a business trip, planning for family travel or even a luxury transatlantic vacation, no one wants to spend more than they have to. More and more travel planners look to the web first, and there are indeed deals to be had online. Hotwire is a good place to find them. Hotwire's core business philosophies are, in fact, the key reasons the online travel planning website is doing so well.
Hotwire.com Core Business Philosophies
- Show the savings customers get by using the website: Since cheap (or at least cheaper) travel deals are sought for even the most pampering upscale vacations, Hotwire displays unsold inventory for airlines, hotels, and car rental companies. In other words, the business model allows these airlines, hotels and car rental companies to display inventory right on the site.
- Respect the site users: Travel planners who search for cheap tickets and other deals online are internet savvy, and capable of comparing prices across brands. Hotwire's Tripstarter tool helps travel planners see long-term price trends along with current details about their vacation destinations. TripStarter also offers advice regarding the lowest available airfare and hotel room rates. The easily navigated tool helps ensure customer satisfaction with the discount travel website.
- Have the website perform satisfactorily for repeat customers: Hotwire has a high level of user satisfaction, and travel planners who are happy with their Hotwire experience use the site again. There is a 24-hour customer support team in place, a star ratings promise (so that a hotel labeled "4 star accommodations at a 2-star price" doesn't turn out to be a cheap 2 star hotel), easy to navigate categories and verifiable savings on discount travel packages. This all leads to very high customer satisfaction.
Expedia, Travelocity, and Orbitz haven't done much in terms of customer satisfaction, and as the "Big Three" travel planning sites, perhaps their management doesn't think they need to bother.
However, Hotwire.com is doing just about everything right for its customers, not the least of which is showing how these customer are valued. Watch out, Big Three: Hotwire's in a great position to change your primacy.
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